On Friday, Mayor Chuck Reed released his June Budget Message, which included his final recommendations for closing the City of San Jose’s $115 million budget deficit in the upcoming fiscal year and preliminary strategies designed to avoid further service cuts in 2012.

The City Council will meet Tuesday to discuss topics that include infrastructure improvement plans, pay cuts for Mayor Chuck Reed and councilmembers, and a settlement in an incident many considered to be police brutality.

The gloves have officially come off in labor negotiations between the city and public employee unions, and whispers of potential strikes are being heard in certain City Hall corners. On Tuesday, the City Council imposed 10 percent cuts in total compensation for four unions by an 8-3 vote. The cuts in pay and benefits will affect more than half of the city of San Jose’s employees.

It’s not that Debra Figone doesn’t trust the city council to spend money—it’s just that she doesn’t trust the city council to spend money wisely. Rather than let the council decide whether San Jose should accept a federal grant that could have saved 53 police officer jobs—and potentially put the city on the hook for millions it doesn’t have—the city manager chose to protect the council from itself.

City Manager Debra Figone passed on applying for a grant that would have saved the jobs of more than a few dozen San Jose police officers but included some significant costs. Members of the Police Officers Association were surprised by the move, and they weren’t the only ones. It seems Figone did not consult the City Council on her decision to pass on applying for the largest possible grant.

The city charter sets out some basic tenants for public employee retirement, and Mayor Chuck Reed is often touted as a stickler for adhering to the charter. The question many ask is: What exactly does the charter say?

After Mayor Chuck Reed and most of the San Jose City Council took a two-hour tongue lashing Tuesday from city employees, retirees, union representatives and even staffers of several state legislators, the council voted 8-3 to push forward with Reed’s declaration of “fiscal and public safety emergency.” That word—”emergency”—allows the city to significantly toughen its stance in pension negotiations with public employees.

On Tuesday the Council will discuss the fiscal reform proposals that Mayor Reed has researched and constructed. It will not be not an ordinary city council meeting but instead a major discussion being held in big cities across the country. Last week, the Council had a study session regarding the City’s retirement system.  From my view, the presentation given by staff, which included the director of retirement services, Russell Crosby, was one of the best I have seen.  A step-by-step explanation of the retirement system was provided.

Mayor Chuck Reed’s fiscal reforms, which would declare a fiscal emergency that allows the city charter to be changed in an effort to slash soaring public employee pension costs, will be discussed at Tuesday’s City Council meeting. While it seems likely Reed will get the necessary votes to begin the process—he already has the support of Vice Mayor Madison Nguyen and councilmembers Rose Herrera and Sam Liccardo—Councilmember Donald Rocha is suggesting the city stop, take a deep breath and consider the possible litigation that could ensue.

In its first month of collecting taxes on medical marijuana being sold inside city limits, San Jose took in almost $290,000. And it appears more money is still on the table. Less than three-quarters (73) of San Jose’s 100-plus collectives paid the business tax in March, according to city figures.

Although we are entering “road paving season” we have next to nothing for the maintenance of our 2,300 miles of road. This issue was raised at the city council meeting last week. A question was asked about issuing bonds to pay for road paving. To issue bonds you need a source of revenue, such as a tax. For example, the $300 annual parcel tax for road paving that was discussed during the Council study session last year. This parcel tax would require appproval by a two-thirds supermajority of San Jose voters.

A legal settlement has been reached in the federal lawsuit between the city and a San Jose State student whose violent encounter with police two years ago was captured on video. Rather than go to court, the city will reportedly settle with Phuong Ho—who said his civil rights were violated when police used a Taser as well as a baton to subdue him—for somewhere in the range of $90,000 to $225,000.

Before word leaked out through the usual channels that councilman Ash Kalra had been arrested and charged with a DUI early Saturday morning, Kalra and his chief of staff, Joseph Okpaku, were already in damage-control mode. They beat the CHiPs to the punch by holding a casual press conference at Kalra’s home.

In the 10th year of budget cuts, San Jose City manager Debra Figone has said more than 600 employees could lose their jobs to help tackle a $115 million deficit for the upcoming fiscal year. The process of handing out pink slips began this week, and more than 100 police officers are being notified that they could be out of a job come July.

Emmett Carson, CEO of the Silicon Valley Community Foundation, says it is “hard to understand” why the San Jose City Council chose to delay action on accepting a $50,000 grant to look into anti-predatory lending policies, what with so many people falling deeper into debt. He should ask Manny Diaz, a former city councilmember and state assemblymember who is now a registered lobbyist for Community Financial Services Association of America, a trade group that represents the payday loan industry

Editor’s Note: The following is a letter that was sent out last week to city employees from City Manager Debra Figone. In the letter, Figone explains the current budget crisis. San Jose is expected to have a deficit of $115 million for the next fiscal year starting in July. Even if all workers agree to a 10 percent cut in total compensation, Figone writes, almost 620 jobs will still need to be eliminated. The last day on the job for many of these people would be June 25. Figone will be unveiling her proposed budget on May 2.